Another volatile week ended with slight gains in U.S. Stocks. Foreign stocks ended the week with modest losses. The European Central Bank minutes indicated they are considering dropping the guarantee to expand quantitative easing if the economic outlook worsens. This was interpreted as an initial step towards tapering QE. Treasury yields were little changed with longer term yields slightly higher. Oil prices ended lower for the week.
In the numbers this week:
- The Institute for Supply Management reported
- It’s index of U.S. manufacturing rose to 57.8 in June from 54.9 in May a sharp acceleration in manufacturing activity.
- Non-Manufacturing index rose to 57.4 in June from 56.9 in May.
- China’s private Caixin purchasing managers index fell to 51.6 in June, down from 52.8 in May. This still represents expansion, but at a slower rate.
- IHS Market reported Europe’s PMI fell to 56.3 in June from 56.6 in May. Manufacturing is accelerating but at a slower rate.
- The Commerce Department reported:
- Factory orders declined 0.8% in May. Excluding volatile transportation orders fell 0.3%.
- The foreign trade gap in goods and services fell 2.3% in May. Imports fell and exports rose.
- The Labor Department reported
- First time claims for unemployment rose 4,000 to a seasonally adjusted 248,000. The four-week moving average of claims rose 750 to 243,000. First time claims have now been 300,000 for 122 consecutive weeks. The longest since 1970 when the workforce and population were much smaller.
- The U.S. created 222,000 jobs in June.
- The unemployment rate moved up to 4.4% from 4.3% as more people entered the workforce.
- Hourly earnings rose 0.2% in June and 2.5% from a year ago.
- The Energy Information Administration’s Weekly Petroleum Data report is here: wpsrsummary (2).
- The Energy Information Administration reported
- Weekly field production of crude oil rose 88,000 barrels per day in the prior week.
- Natural gas in storage rose 46 Bcf last week from the prior week.
- Baker Hughes reported that oil drilling rigs increased 7 to 763. Gas drilling rigs rose 5 to 185.
Please call us if you have any questions.
Loren C. Rex, CFP®, AIF®, MA Erik Smith
Generations Financial Planning & Wealth Management 269-441-4143
77 E. Michigan Ave, Suite 140
Battle Creek, MI 49017
Carrie Fuce, Assistant 269-441-4091
Toll Free: 800-513-8180
Visit our Website: www.genfinplan.com
Registered Representative of and securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Generations Financial Planning & Wealth Management are separate companies and are not affiliated.
These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.